* The partisan logjam showed signs of easing as conservatives warmed to the idea of a short-term increase in the country's borrowing limit and House GOP leaders prepared for a meeting with President Obama.

* Janet Yellen, if confirmed to lead the Federal Reserve, faces the difficult task of defining when the central bank will step back from the expansive monetary programs employed over the past six years to salve the crisis-racked economy.

* Marketers are finally convinced that there's money to be made advertising to the legions of consumers glued to their smartphones and tablets. Spending on mobile ads more than doubled in the first half of the year.

* Pimco held government-related holdings at the world's largest bond fund steady in September as the U.S. bond market's price rebounded last month.

* The market in which banks and other financial firms obtain short-term funding is becoming strained - the latest sign of rising investor anxiety over the debt battle.

* Meredith Whitney, one of Wall Street's best-known and most controversial research analysts, is getting out of the research business, following the departure of numerous clients and employees. Whitney is closing the research part of her firm after four years and next month plans to start a hedge fund, according to her attorney, Stanley Arkin.

* A premature exit by the U.S. Federal Reserve from its easy money policies could cause $2.3 trillion in global bond portfolio losses, the International Monetary Fund warned Wednesday.

* About 20 percent of the people who were warned over a two-year period that they might be sued by U.S. regulators for allegedly violating securities law ended up not facing charges, government figures show. The previously undisclosed numbers track the Securities and Exchange Commission's use of a powerful enforcement tool - called a Wells notice - to alert people that the agency might take enforcement action.

* The investor retreat from the once lucrative currency trading arena passed a milestone Wednesday with the closure of a firm that once was the largest of its sort, FX Concepts. The New York firm, whose assets under management shriveled to $660 million last month, from $14 billion at the dawn of the financial crisis, will close its asset-management business over the next few weeks and return money to investors, the company said in a statement.

* Several of the world's largest banks have scoured through emails and other electronic communications of employees in response to probes by European regulators into suspected manipulation of foreign-exchange markets, according to people familiar with the matter.

* Hedge fund Barington Capital Group LP, along with other investors, has taken a 2.8 percent stake in Darden Restaurants Inc, the owner of Olive Garden, Red Lobster and six other restaurant chains. The fund is pushing for Darden to form two separate companies, among other changes, according to people familiar with the matter.

FT

Janet Yellen prepares to take over the difficult job of chairmanship of the central bank as she seeks to forge consensus at the U.S. Federal Reserve even as policy makers at the Fed remain divided over the merits of slowing its $85 billion-a-month asset purchases in September.

JPMorgan Chase's physical commodities operations has garnered interest from more than two dozen parties, including pension funds and trading houses, following the bank's July decision to divest the business.

UK is contemplating following a U.S.-style procedure of rewarding whistleblowers who uncover economic crimes with payouts.

President Barack Obama and the U.S. Congress are stepping up discussions seeking a way out of a budget crisis that could leave the U.S. government unable to pay its bills.

Vodafone refused a $95 billion offer from Verizon months before it finalised the third-largest deal in corporate history. It later offered to merge with Verizon to create a global telecom company but finally completed the deal after being paid an extra $35 billion.

The Royal Mail IPO is seven times subscribed in an echo of the privatisation frenzies of the 1980s after private investors flocked to buy shares, with 700,000 individual applications leaving the retail offer.

Britain's prime minister has supported a statement by the new head of MI5 that said leaks by Edward Snowden, the former National Security Agency contractor, are harming the fight against terrorism.

The once-sleepy market for derivatives that insure against a US default has seen growing investor activity after fears that Washington could miss a payment on its debt.

NYT

* Owners whose companies depend on government services such as a guaranteed loan, regulatory approval or a national park's operation worry about the toll the shutdown may have on them. The toll may not be conspicuous yet in the broader economy, but at the local level, the ripples are spreading.(http://link.reuters.com/red73v)

* Investors are wary of the government's ability to pay its debt on time, shifting the market for short-term Treasury bills and potentially having long-term effects. (http://link.reuters.com/sed73v)

* President Obama on Wednesday announced what he called perhaps his most important economic decision, nominating Janet Yellen to lead the Federal Reserve system and be his independent co-steward of the economy, calling her "one of the nation's foremost economists and policy makers". Janet Yellen's nomination comes amid one of the most rancorous and fraught battles in years between the political parties over the course of the economy. (http://link.reuters.com/ved73v)

* House Republicans, increasingly isolated from even some of their strongest supporters more than a week into a government shutdown, began on Wednesday to consider a path out of the fiscal impasse that would raise the debt ceiling for a few weeks as they press for a broader deficit reduction deal. (http://link.reuters.com/cud73v)

* Janet Yellen, President Obama's pick to run the Federal Reserve, has backed aggressive steps to promote employment but shown only limited willingness to tolerate higher inflation. (http://link.reuters.com/xed73v)

* Meredith Whitney appears poised to leave the industry that lifted her to fame. The brokerage arm of the Meredith Whitney Advisory Group deregistered from FINRA, the securities industry's self-regulatory body, on Aug. 28, according to a filing. The termination of Meredith Whitney Advisory Group's brokerage license follows a rocky period for the onetime star analyst, who shot to fame with her prediction in 2007 that Citigroup Inc would be forced to cut its dividend. (http://link.reuters.com/qud73v)

* Barclays Plc promoted John Miller, its head of global financial sponsors and its global industrial group, to the new role of head of banking for the Americas, according to an internal memorandum sent on Wednesday and reviewed by DealBook. A spokeswoman for Barclays confirmed the memo's contents. (http://link.reuters.com/rud73v)

* Nestle SA, the Swiss food giant, is looking to sell its Jenny Craig brand, just seven years after spending $600 million to buy the weight-loss company from two private equity firms, according to a person briefed on the matter. (http://link.reuters.com/wud73v)

* Irving Picard, the trustee seeking to recover money for the victims of Bernard Madoff's Ponzi scheme, asked the Supreme Court on Wednesday to review a ruling that prohibits him from suing several of the world's largest banks that he contends aided the fraud. (http://link.reuters.com/tud73v)

* The Financial Times, signaling a tighter focus on digital publishing, plans to stop printing regional editions and produce only a single global daily newspaper. In a memo to employees on Tuesday, Lionel Barber, the editor of The Financial Times, said that the publication, which is based in London, would make the change during the first half of 2014. (http://link.reuters.com/byd73v)

Canada

THE GLOBE AND MAIL

* The arrival of price-slashing U.S. retailers, a high-profile Senate investigation and tariff cuts on select consumer products have done little to narrow the persistent gap between Canadian and U.S. prices. There is still a substantial 10-percent spread, based on a basket of consumer products surveyed by the Bank of Montreal. The last time BMO sampled cross-border prices in May 2012 the gap was 14 percent.

* Canadian Prime Minister Stephen Harper's former chief of staff had a binder full of details on Senator Mike Duffy's official and personal activities, but appears not to have provided it to auditors reviewing Duffy's expenses nor to police when they first opened an investigation.

Reports in the business section:

* A Canadian firm is at the heart of America's historic healthcare overhaul - and smack in the middle of a political maelstrom. A unit of CGI Group Inc, the information technology giant based in Montreal, is the main contractor behind the new federal marketplace for health insurance. The system is the centrepiece of the Affordable Care Act, better known as Obamacare.

* The chief executive of Rogers Communications Inc is apologizing for a national outage that knocked out voice and texting services across the company's wireless network. Nadir Mohamed issued his statement early Thursday, after Rogers said its entire wireless network had been restored shortly before midnight eastern time.

NATIONAL POST

* NDP would pay for future spending commitments by raising corporate taxes back to the level they were at when the Conservatives took office in 2006, said party leader Tom Mulcair. The Conservatives have steadily reduced the federal corporate rate to 15 percent from 22 percent in 2006. The NDP leader mused about hiking corporate taxes during a caucus retreat in Saskatoon, while committing that Canadian combined federal and provincial rates would be "several points" lower than the combined U.S. federal and state rate of nearly 40 percent.

FINANCIAL POST

* Kinross Gold Corp has pulled off an increasingly rare feat in the mining industry: building a project on time and on budget. The Toronto-based miner announced Wednesday that its remote Dvoinoye mine in Northeast Russia has entered commercial production. Kinross bought the project back in 2010 and built it for a reasonable price of about $360 million.

* Giving a cash infusion to its shareholders will not take Jean Coutu Group Inc's out of the running for making future acquisitions, the drug retailer's chief executive said on Wednesday. Speculation that the company was building up a war chest with proceeds from its sale of shares in the U.S. retailer Rite Aid Corp was dampened this week after the company announced it would return up to C$502 million ($482.81 million)to shareholders through a share buyback and a special one-time cash dividend.

China

SECURITIES TIMES

- China's satellite navigation industry is estimated to exceed 400 billion yuan ($65.35 billion) in value by 2020, according to a development plan released by the China Academy of Telecommunication Research on Wednesday.

CHINA DAILY

- China's premier Li Keqiang proposed a treaty on good-neighbourliness, friendship and cooperation between China and the Association of Southeast Asian Nations (ASEAN) on Wednesday. The treaty involves a legal framework that includes a commitment from Beijing for peaceful co-existence.

PEOPLE'S DAILY

- Chinese officials should not engage in superficial activities that do not satisfy the needs of ordinary folk, said a commentary in the paper that acts as the government's mouthpiece.

Fly On The Wall 7:00 AM Market Snapshot

ANALYST RESEARCH

Upgrades

ADTRAN (ADTN) upgraded to Buy from Hold at NeedhamADTRAN (ADTN) upgraded to Neutral from Sell at UBSCanadian Natural (CNQ) upgraded to Buy from Hold at CanaccordCheck Point (CHKP) upgraded to Outperform from Market Perform at CowenDiscover (DFS) upgraded to Buy from Neutral at CitigroupFelcor Lodging (FCH) upgraded to Buy from Neutral at GoldmanHP (HPQ) upgraded to Neutral from Underperform at MizuhoHP (HPQ) upgraded to Sector Perform from Underperform at RBC CapitalInfoblox (BLOX) upgraded to Buy from Neutral at Sterne AgeeKAR Auction (KAR) upgraded to Buy from Neutral at GoldmanONEOK (OKE) upgraded to Buy from Hold at JefferiesStratasys (SSYS) upgraded to Overweight from Neutral at JPMorganTelecom Italia (TI) upgraded to Sector Perform from Underperform at RBC CapitalTiffany (TIF) upgraded to Buy from Neutral at Sterne AgeeXPO Logistics (XPO) upgraded to Buy from Hold at Stifel

Downgrades

ARIAD (ARIA) downgraded to Neutral from Buy at CitigroupARIAD (ARIA) downgraded to Underweight from Equal Weight at BarclaysAixtron (AIXG) downgraded to Underweight from Neutral at HSBCGlaxoSmithKline (GSK) downgraded to Underperform from Neutral at Credit SuisseLeapFrog (LF) downgraded to Neutral from Buy at AscendiantRuby Tuesday (RT) downgraded to Underperform from Market Perform at Raymond JamesRyman Hospitality (RHP) downgraded to Neutral from Buy at GoldmanShire (SHPG) downgraded to Neutral from Outperform at Credit SuisseSony (SNE) downgraded to Neutral from Buy at Citigroup

Initiations

Artisan Partners (APAM) initiated with a Buy at JefferiesBE Aerospace (BEAV) initiated with a Buy at CanaccordBoeing (BA) initiated with a Buy at CanaccordCatamaran (CTRX) initiated with an Outperform at RBC CapitalCubist (CBST) initiated with an Outperform at OppenheimerDresser-Rand (DRC) initiated with a Market Perform at William BlairDucommun (DCO) initiated with a Buy at CanaccordEsterline (ESL) initiated with a Hold at CanaccordFireEye (FEYE) initiated with an Outperform at CowenFirst Niagara (FNFG) initiated with an Outperform at RBC CapitalFortinet (FTNT) initiated with a Market Perform at CowenFranco-Nevada (FNV) initiated with an Equal Weight at BarclaysHEICO (HEI) initiated with a Hold at JefferiesHexcel (HXL) initiated with a Buy at CanaccordKirby (KEX) initiated with an Outperform at FBR CapitalMatson (MATX) initiated with a Market Perform at FBR CapitalNetflix (NFLX) initiated with a Buy at NeedhamPrecision Castparts (PCP) initiated with a Buy at CanaccordRockwell Collins (COL) initiated with a Hold at CanaccordRoyal Gold (RGLD) initiated with an Overweight at BarclaysSpectrum Brands (SPB) initiated with a Hold at JefferiesSpirit AeroSystems (SPR) initiated with a Hold at CanaccordSun Communities (SUI) initiated with a Neutral at CitigroupTAL International (TAL) initiated with a Market Perform at FBR CapitalTransDigm (TDG) initiated with a Buy at CanaccordVirtus Investment Partners (VRTS) initiated with a Hold at JefferiesWisdom Tree (WETF) initiated with a Buy at Jefferies

HOT STOCKS

Chevron (CVX) said Q3 earnings expected to be lower than Q2BlackBerry (BBRY) said to be more open to breakup of company. SAP (SAP), Cisco (CSCO) said to only be interested in parts of BlackBerry. Intel (INTC) said to be only interested in BlackBerry patents, all reported by Bloomberg Men's Wearhouse (MW) adopted limited duration shareholders rights plan following rejection of unsolicited proposal by Jos. A. Bank (JOSB) to acquire MW for $48.00 per share. JoS. A. Bank to continue pursuit of its $48 per share proposalSirius XM (SIRI) announced additional $2B stock repurchase program KKR & Co. (KKR) to acquire The Crosby Group and Acco Material Handling Solutions from Melrose Industries for about $1BKKR & Co. (KKR) invested $200M in Weststar Aviation, additional terms not disclosedHess Corp. (HES) sold terminal network to Buckeye Partners (BPL) for $850M in cash Crestwood Midstream (CMLP) acquired Arrow Midstream for $750MMasterCard (MA) acquired Turkish payment provider Provus, terms not disclosedTime Warner Cable (TWC) signed multi-year distribution agreement with UnivisionVonage (VG) to acquire Vocalocity for $130MLexington Realty (LXP) acquired $302M Manhattan land portfolioFirst Solar (FSLR) to sell Mesa, AZ facility

Spending on mobile advertising in the U.S. (AAPL,GOOG, FB, WPP) more than doubled in the first half of the year, totaling $3B, up from $1.2B a year earlier, according to Interactive Advertising Bureau estimates, the Wall Street Journal reports

About 20% of the people warned over a two-year period that they might be sued by U.S. regulators for allegedly violating securities law ended up not facing charges, government figures show. The previously undisclosed numbers track the SECs use of a powerful enforcement tool—called a Wells notice—to alert people that the agency might take enforcement action, the Wall Street Journal reports

Fiat (FIATY) and Chrysler CEO Sergio Marchionne discouraged investors from participating in Chrysler Group LLC's IPO, a process that was forced by the automaker's second-largest shareholder last month, Reuters reports

The Transport Workers Union, that supports U.S. Airways (LLC) planned merger with American Airlines (AAMRQ), can weigh in on the court fight to stop the deal, the judge hearing a government challenge to the combination said, Reuters reports

As Fed vice chairman, Janet Yellen played a supportive role in the biggest overhaul of financial regulation since the 1930s. As chairman, she will lead the drive for those policies while monitoring their costs for borrowers and banks, Bloomberg reports